Capital Gains
Tax Rates

When the taxable gain or loss resulting from the sale of an asset is calculated, its cost basis is used rather than its actual purchase price.

FEDERAL CAPITAL GAINS TAXES

The amount of federal capital gains tax will depend on the Exchanger’s tax bracket.

INDIVIDUAL FILING SINGLE

RATE

Income $0 - $37,650

0%

Income $37,651 - $415,050

15%

Income $415,051 and over

20%

MARRIED FILING JOINTLY / QUALIFYING WIDOW OR WIDOWER

RATE

Income $0 - $75,300

0%

Income $75,301 - $466,950

15%

Income $466,951 and over

20%

When the taxable gain or loss resulting from the sale of an asset is calculated, its cost basis is used rather
than its actual purchase price. The cost basis is an adjustment of the purchase price that takes into account
factors such as fees paid (brokerage fees, certain legal fees, sales fees), taxes paid (including sales tax, excise
taxes, real estate taxes, etc.) and depreciation.

STATE CAPITAL GAINS TAXES

In addition to federal capital gains tax, there may also be a state capital gains tax, which varies by state.

TOP MARGINAL STATE TAX RATE ON CAPITAL GAINS

STATE RATE

COMBINED CAPITAL GAINS RATE

Alabama*

5.0%

27.4%

Alaska

0.0%

25.0%

Arizona

4.5%

27.7%

Arkansas*

7.0%

27.9%

California

13.3%

33.0%

Colorado

4.6%

27.8%

Connecticut

6.7%

29.0%

Delaware

6.6%

29.0%

Florida

0.0%

25.0%

Georgia

6.0%

28.6%

Hawaii*

7.3%

29.4%

Idaho

7.4%

29.4%

Illinois

5.0%

28.0%

Indiana*

3.4%

27.8%

Iowa*

9.0%

29.6%

Kansas

4.8%

27.9%

Kentucky

6.0%

28.6%

Louisiana*

6.0%

27.9%

Maine

8.0%

29.8%

Maryland*

5.8%

30.3%

Massachusetts

5.2%

28.1%

Michigan*

4.4%

27.8%

Minnesota

9.9%

30.9%

Mississippi

5.0%

28.0%

Missouri

6.0%

28.6%

Montana*

6.9%

27.9%

Nebraska

6.8%

29.1%

Nevada

0.0%

25.0%

New Hampshire

0.0%

25.0%

New Jersey

9.0%

30.4%

New Mexico*

4.9%

26.5%

New York*

8.8%

31.5%

North Carolina

5.8%

28.5%

North Dakota*

3.2%

26.3%

Ohio*

5.4%

28.3%

Oklahoma

5.3%

28.2%

Oregon

9.9%

31.0%

Pennsylvania

3.1%

26.8%

Rhode Island

6.0%

28.6%

South Carolina*

7.0%

27.3%

South Dakota

0.0%

25.0%

Tennessee

0.0%

25.0%

Texas

0.0%

25.0%

Utah

5.0%

28.0%

Vermont

9.0%

30.4%

Virginia

5.8%

28.5%

Washington

0.0%

25.0%

West Virginia

6.5%

28.9%

Wisconsin*

7.7%

28.2%

Wyoming

0.0%

25.0%

D.C.

9.0%

30.4%

U.S. Average

N/A

28.7%

* These states either allow a taxpayer to deduct their federal taxes from state taxable income, have local income taxes, or have special tax treatment of capital gains income.